New Jersey Assembly Bill A524

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Refer: 6/2/22

Caption

Provides gross income tax credit to certain taxpayers who pay for certain in-home services through health care service firm.

Impact

If passed, A524 would provide significant financial relief to low-income seniors and disabled individuals by allowing them to claim a tax credit against their gross income tax liability. This tax relief can help these individuals afford necessary in-home care services, which can be critical for maintaining their health and well-being while remaining in their residences. Given the rising costs of health care, the bill aims to alleviate some of the financial burdens associated with these services and enhance the quality of life for the targeted demographics.

Summary

Assembly Bill A524 proposes a gross income tax credit intended to assist certain taxpayers in New Jersey who incur expenses for in-home services provided through a registered health care service firm. Specifically, the bill targets taxpayers who earn less than $150,000 annually and are either permanently and totally disabled or aged 65 and older. The proposed credit amounts to 20 percent of the eligible expenses incurred during the taxable year for such in-home companion, health care, or personal care services.

Contention

Notably, the bill stipulates that any expenses reimbursed or paid through insurance cannot be claimed for the tax credit. This provision may raise concerns among some stakeholders, as it could complicate the financial benefits for those who have insurance coverage that includes in-home care services. Furthermore, the bill's focus on a specific income bracket and age demographic may lead to discussions about equity and the broader implications for other groups who may also face similar financial challenges but do not fit into the specified categories.